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Zorak03

How long to wait before refinancing co-signed loan?

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I had been living outside the country for 10 years so all my previous bank loans had dropped off my credit report. I only had credit cards, which were paid in full every month. I bought a Tesla but was not able to get approved for a loan by my self, even when putting down 25%, due to insignificant loan history. A family member co-signed. 

 

I would like to get the loan refinanced as quickly as possible as the DMV is requiring the co-signer to be on the registration. The current loan balance is 40k but I am prepared to put down another 10-15k to drop it to 30-25k. The loan was issued in Dec and first payment was made Feb 6th. About how long should I wait to refinance to have a shot at approval--a slight rate increase is ok as I plan to pay the loan off (72 month term) within 2 years. Maybe 6 months?

 

Credit score is about 800, no negative marks but I am self employed.

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50 minutes ago, MarvBear said:

Can you prove your state income via a tax return, specifically Schedule C?

Unfortunately not. I have a really good accountant and we were able to write off a lot of stuff, including most of the Tesla I purchased, to show a loss. My real income is close to $100k and I have $30k in a savings account of the bank that issued the loan--plus my balance of my business checking account has not dropped below $10K in a few months.

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I told this same story back in 1980 something to one of my major captive lenders.  They said:

 

Quote

Schedule C, also known as “Form 1040, Profit and Loss,” is a year-end tax form used to report income or loss from a sole proprietorship or single-member LLC. You must file a schedule C if the primary purpose of your business is to generate revenue/profit and if you're regularly involved in your business's activities.Feb 12, 2018

 

 

Sometimes have a really good accountant can cause a case of YMMV.

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On 2/26/2019 at 6:53 PM, MarvBear said:

I told this same story back in 1980 something to one of my major captive lenders.  They said:

 

 

 

Sometimes have a really good accountant can cause a case of YMMV.

I am afraid I do not totally understand your meaning. Are you saying my chances are not good?

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Please don't forget my background.   I am an automotive industry insider.

If I think like a consumer, then I would think the probability would be great that you PIF your automotive loan.

If I think like an automotive lender, then your tax return does not support your ability to the claim.

However, I think to answer the question you asked if you can bear the indignity of having a joint applicant for two years, then I think you would have proved your ability to satisfactorily meet your obligations.  Additionally, I would waive POI Proof Of Income.

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